Donald Trump highlighted Pete Hegseth’s role in initiating action against Iran during a conference in Tennessee on Monday. Addressing the audience, Trump recounted calling key advisors about the Middle East crisis, noting Iran’s history of terror and proximity to nuclear capability.
Turning to Hegseth, seated nearby as Secretary of Defense, Trump said: ‘And Pete, I think you were the first one to speak up. And you said, “Let’s do it, because you can’t let them have a nuclear weapon.”’ Hegseth offered an awkward smile as Trump described recent talks with Iran that began the previous night.
Trump expressed optimism, stating the discussions appear promising and that Iran has agreed not to pursue nuclear weapons. ‘I think they’re very good. They want peace… but we’ll see. You have to get it done. But I would say there’s a very good chance,’ he added, praising Israel as a strong partner.
Economic Fallout from Strait of Hormuz Blockade
Now in its fourth week, the conflict disrupts global trade, particularly through Iran’s control of the Strait of Hormuz, where 20% of the world’s oil flows. Iran restricts access to allied nations only, prompting warnings from International Energy Agency chief Fatih Birol.
Speaking at Australia’s National Press Club, Birol described the situation as ‘two oil crises and one gas crash put all together,’ akin to 1970s shocks and Russia’s 2022 Ukraine invasion. ‘The global economy is facing a major, major threat today,’ he said. ‘No country will be immune… So there is a need for global efforts.’ He noted damage to at least 40 energy assets across nine countries.
Austrian researchers estimate up to $1.2 trillion in affected exports from prolonged closure. The UK faces Europe’s highest exposure, importing $12 billion in goods annually via the strait, including $5.9 billion in Qatari LNG and propane, creating short-term supply vulnerabilities and price spikes.
Escalating Military Actions and Diplomatic Tensions
Trump issued a 48-hour ultimatum to Iran on Saturday to reopen the strait without threats, threatening to target power plants. Iran warned Sunday that any strikes would destroy regional energy infrastructure irreversibly.
Monday, Trump announced on Truth Social that ‘very good and productive’ talks led to a five-day postponement of power plant strikes, though other US operations continue. He suggested potential joint oversight of the strait with Iran’s next Ayatollah.
Iran launched missile strikes on Tel Aviv on March 24, hours after state media hinted at ‘special events’ for US and Israeli allies to derail negotiations. Sirens blared across Israel, with interceptions causing debris damage in northern areas and injuries to six people. A munition with 100kg of explosives struck Tel Aviv, damaging buildings and vehicles. Additional hits targeted Eilat, Dimona, and Yeruham.
Israeli Prime Minister Benjamin Netanyahu vowed sustained strikes on Lebanon and Iran, targeting missile and nuclear programs alongside Hezbollah. Recent actions eliminated two nuclear scientists and struck sites near Beirut and Tyre, killing two in Lebanon.
Iran denies US claims of talks. Parliament Speaker Mohammad Bagher Qalibaf stated on X: ‘No negotiations have been held with the US.’ Officials insist no discussions occurred without full US withdrawal, compensation, and guarantees. A foreign policy analyst called negotiations ‘foolishness.’
Trump indicated the war could end in a week if talks succeed, or bombing would continue otherwise. Hegseth recently defended the effort, criticizing media and European allies for doubting its success and urging global gratitude. Public approval for Hegseth and war-related officials has dropped sharply since February 28.
EU chief Ursula von der Leyen called Tuesday for negotiated peace, citing impacts on gas and oil prices affecting businesses and societies.
